Comments
The stock of CSB Bank was listed on December 2019. Following a strong listing gain, the stock recorded a high of ₹313.5 but then started to decline.
Thereafter, it was on a medium-term downtrend until it registered a fresh low at ₹95.6 in late March this year.
The stock took support at around ₹100 in late March and changed direction, triggered by positive divergence on the daily relative strength index (RSI). Since then, it had been on an intermediate-term uptrend forming higher peaks and troughs.
But the stock met with a key resistance at around ₹240 in late August and began to move sideways with an upward bias. The price action from late August, until recently, appears to be forming an ascending triangle pattern with a horizontal line at ₹240.
On Friday, the stock jumped 7.9 per cent, accompanied by extraordinary volumes, decisively breaking above the significant resistance level as well as the horizontal line of the triangle at ₹240.
This breakout has strengthened the uptrend that had commenced from March lows; the short-term trend is also up. The stock trades well above the 50- and 200-day moving averages.
Both the daily and the weekly RSIs are featuring in the bullish zone, backing the stock’s rally.
The medium-term outlook is bullish for CSB Bank. It has the potential to extend the uptrend and reach the price targets of ₹275 and ₹300 over the medium term, with a minor pause at ₹275. Investors can buy the stock with a stop-loss at ₹235.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.